Księgarnia naukowa
English Polski
On-line access


0.00 PLN
Bookshelf (0) 
Your bookshelf is empty
Loss Coverage: Why Insurance Works Better with Some Adverse Selection

Loss Coverage: Why Insurance Works Better with Some Adverse Selection

Publisher Cambridge University Press
Year 02/05/2017
Pages 282
Version paperback
Readership level Professional and scholarly
ISBN 9781107495906
Categories Economic statistics, Insurance & actuarial studies
111.29 PLN (with VAT)
$30.36 / €26.25 / £23.09 /
Product to order
Delivery in 3-4 weeks
Add to bookshelf

Book description

Most academic and policy commentary represents adverse selection as a severe problem in insurance, which should always be deprecated, avoided or minimised. This book gives a contrary view. It details the exaggeration of adverse selection in insurers' rhetoric and insurance economics, and presents evidence that in many insurance markets, adverse selection is weaker than most commentators suggest. A novel arithmetical argument shows that from a public policy perspective, 'weak' adverse selection can be a good thing. This is because a degree of adverse selection is needed to maximise 'loss coverage', the expected fraction of the population's losses which is compensated by insurance. This book will be valuable for those interested in public policy arguments about insurance and discrimination: academics (in economics, law and social policy), policymakers, actuaries, underwriters, disability activists, geneticists and other medical professionals.

Loss Coverage: Why Insurance Works Better with Some Adverse Selection


Part I. Introduction: 1. The central ideas of this book; 2. Adverse selection: a history of exaggeration; Part II. Loss Coverage: 3. Introduction to loss coverage; 4. Basic mathematics of loss coverage; 5. Further mathematics of loss coverage; 6. Partial risk classification, separation and inclusivity; Part III. Further Aspects of Risk Classification: 7. A taxonomy of objections to risk classification; 8. Empirical evidence on adverse selection; 9. Myths of insurance rhetoric; 10. Myths of insurance economics; 11. Contexts where adverse selection may be stronger; 12. Risk classification and moral hazard; 13. Risk classification and big data; Part IV. Conclusion: 14. Summary and suggestions; Appendix A. Alternative demand functions; Appendix B. Multiple equilibria: a technical curiosity; References; Index.

We also recommend books

801 777 223